MGMT 466: Corporate Social Responsibility & Governance

Test your understanding of corporate governance, agency issues, and the effects of agency problems on corporate strategy and decision-making. Learn about the need for professional managers and the impact of short-term focus on business operations.

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Questions and Answers

What is the primary concern in the agency issue?

Divergence of interests between principals and agents

What is the goal of corporate governance mechanisms?

To enable managers to use their expertise while keeping them from acting in their own self-interest

What is the primary difference between corporate governance and corporate social responsibility?

Prioritizing shareholders' interests vs. stakeholders' interests

What is an example of an internal governance mechanism?

Board supervision by outside directors Signup and view all the answers

What is an example of a means of governance that can discipline managers?

Takeovers Signup and view all the answers

What is the concept that emphasizes social, environmental, and economic responsibilities?

Triple Bottom Line Signup and view all the answers

What is the main argument against CSR according to Milton Friedman?

It's a negligence to shareholders Signup and view all the answers

What is the term for companies that pretend to comply with CSR but do not actually make significant changes?

Symbolic CSR Signup and view all the answers

What is the name of the companies that pursue both social and environmental benefits, in addition to economic benefits?

Benefit Corporations Signup and view all the answers

What is the term for when companies claim their products are 'green' when they are not?

Greenwashing Signup and view all the answers

What is the problem that arises when companies that are more likely to engage in irresponsible behavior are more likely to engage in CSR?

Adverse Selection Problem Signup and view all the answers

What is the term for the area of CSR that is not confined to a firm's direct operating area, but also includes suppliers and partners?

Boundary of Firm Responsibility Signup and view all the answers

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MGMT 466: Corporate Social Responsibility & Governance

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